Guyana: $10.7Bn Budgeted for Gas-to-Energy Project in 2026

  • The Government of Guyana has set aside some GY$10.7Bn in its 2026 budget to finance its Gas-to-Energy (GTE) project. This year’s allocation comprises both local and foreign financing, according to budget documents laid in the National Assembly.
  • According to the fiscal plan, GY$8.1Bn will be supplied through loan financing by the United States Export Import Bank (EXIM) while GY$2.6Bn will come from the national treasury. The 2026 Budget states that GY$258Bn has already been spent so far on the gas project, which, when completed, is expected to reduce the cost of electricity by 50%.
  • After missing several deadlines, the government anticipates that the GTE project will be ready by the end of 2026. The project comprises a Natural Gas Liquids (NGL) facility, a 300-megawatt power plant and pipeline to transport the gas from the Liza Fields in the Stabroek Block to the Wales Development site, West Bank Demerara. Exxon completed the pipeline component of the project more than a year ago and is currently awaiting the other two elements to complete construction.
  • The rising cost and lack of transparency in the project has been the subject of debate over the years with the government failing to produce a feasibility study to justify the country’s single largest investment to date.
  • Nevertheless, the commissioning of the flagship GTE project by the end of 2026 is expected to reduce fuel import needs and improve electricity reliability, thereby supporting non-oil sectors, and adds to Guyana’s robust 2026 economic outlook. The project will also produce cooking gas at a cheaper rate, which the government says will aid in the reduction of the cost of living.
  • Overall, real GDP growth in Guyana is expected to accelerate again in 2026 and to average 17.3% annually between 2026 and 2028. This will be driven by higher exports, with the impulse from the Yellowtail project lifting growth in 2026 and then continuing this trend, as the Uaru and Whiptail projects are due to come online over 2026 and 2027. That said, further delays to the GTE project, which was originally slated for completion in 2025, would keep fuel imports high and reduce the contribution of net exports to real GDP growth.

(Sources: Kaieteur News & BMI, A Fitch Solutions Company)